Yes, I think they will respond, but not with an official price cut. Special deals, like maybe 2 free games (e.g. LBP3 + 1) should be enough to provide people with a sense of roughly equivalent value. No doubt $50 retailer gift cards will make an appearance. Question is whether Xb one will do $50 retailer gift cards along with the $350 price tag.
“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell
"When the power of love overcomes the love of power, the world will know peace."
Jimi Hendrix